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KieranE

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Everything posted by KieranE

  1. Yeah true maybe I shouldn't trust everything these mortgage comparison sites say! Perhaps when you apply it's not so generous. My example was meant to be two people both earning 60k each - so 120k joint. Think that's about 80k take home. Possibly that is pretty rare though apparently 10% of workers earn that much! Anyway I just thought it might be interesting to others since it surprised me how apparently "cheap" it could be per month to buy a 800k house provided you have a 25% deposit. Especially the BTL one - even a 5 year fix I/O is £950 per month with Barclays to borrow 600k - I'd expect one could rent out a £800k house for £2000 per month, so even after a rather OTT 50% for S24 tax / voids / maintenance it's still ahead. Agree that might not be pretty in five years time mind you ...
  2. So wait ... with two incomes of £60k each and a (admittedly large) £200k deposit it's perfectly possible to borrow £600k to buy an £800k house. And you'd pay a little under £2000 per month initially if you borrow over 30 years and fix for 2 years at 1.0%. Though some lenders (e.g. YBS - https://www.ybs.co.uk/mortgages/interest-only-new-customers/index.html ) will accept part-repayment + part-I/O with sale of house as repayment strategy if you have a high enough income (£100k joint) and large enough deposit (25%) and keep the I/O bit to 50% of the loan. With that it's possible ( according to https://www.landc.co.uk/partners/thisismoney/?icid=thisismoney ) to get the initial monthly payment down to under £1200 per month for an 800k house (200k deposit, 300k repayment, 300k I/O). But - according to https://www.comparethemarket.com/mortgages/buy-to-let/ - if you're a landlord with a 200K deposit, you can take out a purely interest-only mortgage at just over 1.5% fixed for two years - which is only about £800 per month! For an 800k house. Insane - I'm beginning to see why ordinary houses start at £800k round these parts in London ...
  3. Thought this was mildly interesting ... not sure how massive the drop is but could be fairly sizable. It's apparently a "contract reassignment" which seems to mean someone wants out of a off-plan purchase! £585k for 914 sq.ft. on 3rd floor of "Jasmine house" https://www.rightmove.co.uk/properties/110421506#/ (map location is slightly off - it should be next to the new stadium by kew bridge) Compare to glossy developer sales website where two similar but smaller ones are £655k and £670k (unsold) ... https://ecoworldlondon.com/places-to-live/current/verdo-kew-bridge
  4. Yes, in some cases. Local Housing Allowance Rate for a two-bed property in this part of Inner West London is £339.45 per week: https://www.hounslow.gov.uk/info/20072/housing_benefit/1255/local_housing_allowance/2 That's £17,650 per year. Landlords seem to be willing to accept gross yields as low as 4% at the moment, presumably because interest rates on mortgages are 2-3%. And because savings interest is so low. 4% of £400,000 is £16,000 per year. So housing benefit does support a price of up to £400,000 for a 2-bed flat. Which, funnily enough, is what a fairly basic two-bed property in Inner West London will cost. Not sure the numbers add up so well for a 4-bedroom house mind you.
  5. It's taken 9 drops but that's 23% off now ... https://www.rightmove.co.uk/properties/88799221#/ Not sure what the last sale price price - many flats at same post code.
  6. Maybe for some of these short leases you can just think of it like rent? £1,000,000 / 32 + £11,000 = £42K per year, £4K per month. Given the location, then pre-Covid the maths might have worked ok? Either as a AirBnB (if you don't care about 90 day rule), or for some, err, "escorts", or for some spoilt overseas students. I mean, you are next to hyde park, royal albert hall, imperial college, a whole bunch of embassies ...
  7. OK, I checked. Of the 60 houses sold in Brentford in Sep-Dec 2020, 59 of them are green (real terms increase) on https://houseprices.io/?q=brentford .
  8. Unfortunately - like it or not - family homes with gardens where I am in outer west london (brentford/northfields/isleworth) do seem to be selling quickly and often at prices higher than 2 years ago. Recent examples of the sort of properties I mean: https://www.rightmove.co.uk/properties/83733064#/ https://www.rightmove.co.uk/properties/102208586#/ https://www.rightmove.co.uk/properties/74550774#/ Possibly some will fall through but plenty do seem to be showing up on the land registry at houseprices.io. True though that flats are not shifting!
  9. OK, here goes a devil's advocate argument - if you look at it as: - OtherCountry sells Britain useful things like laptops, trainers, fridges, toothpaste, phones, lightbulbs, engines, and so on. - Britain gives OtherCountry British Pounds in return. - OtherCountry uses those British Pounds to buy ugly "luxury" cladding-covered apartments in Battersea or Deansgate and very expensive degree courses. Then maybe it's not so bad for the U.K. worker? Cheap useful stuff in return for some ugly apartments no-one really wants anyway. It does of course depend on the extent to which the inflation "leaks out" from ugly apartments and overseas student tuition to normal housing and U.K student tuition ...
  10. Seven drops in nearly three years ... https://www.rightmove.co.uk/properties/65139475#/ I think the sun loungers add a nice touch.
  11. Oh good point - forgot about that. It's already down to just 20% of interest claimable this year I think. In that case I just can't understand why mortgaged landlords are not selling up left, right, and centre? Or is that about to happen!
  12. Hang on, I was replying to a comment by Pop321 where he said: I was merely agreeing that a house "not a million miles off 2005 prices" might actually not be a bad price. I think we are in agreement that house prices became somewhat divorced from normal economic reality sometime shortly after 2004/2005! I'm not sure yet about the trend 2016 - 2021 round here, there's too few sales to say. Hopefully you are right.
  13. I would like to be wrong, but I was replying to a post that said 2005, not 2016. I am looking on houseprices.io, so I am talking about selling prices. Examples of houses (not flats) that sold in 2020 and also sold in 2004-2006 from first couple of pages on houseprices.io for TW7: Sadly it's hard to argue with the numbers - I agree that prices have softened in some areas in the last 5 years or so, but it seems silly to pretend that they are not way up on 2005 ...
  14. Quite - houses selling for more like 2.5 x 2005 prices round here in zone 4 west london!
  15. Oops, didn't realise I was replying to a 6 month old post!
  16. That's been my experience where I am over the last 10 years (2010 -> 2020). Rent: 1400 pcm -> 1700 pcm (up 20%) Buy: 320K -> 550K (up 70%) According to the bank of england overall inflation from 2010 to 2020 has been about 30% so rent has gone down in real terms! I guess the missing factor here is interest rates of course. 2010 BTL mortgage rates were about 4% 2020 BTL mortgage rates were about 2.5% .. so the rental income can support a much higher mortgage now 2010 savings rates were about 2% 2020 savings rates were about 0.6% ... so the rental income on a much higher purchase price is attractive compared to savings now For prices to fall you need rents to fall AND interest rates to stop falling ...
  17. "decrease of 7%" makes it sound less dramatic than it is - looking at it another way, it's gone from 29 to 22 - that's a 25% drop!
  18. As I understand it, the ONS figures do try to take the type of property into account, to avoid - as you say - a temporary change in the mix of sales skewing the numbers. I think the Rightmove index on the other hand probably is affected by that skewing? But perhaps the way ONS do that is not robust as the old land registry figures that looked at repeat sales of (literally) the same property? Citation - might be a bit out-of-date, but this article from when the new ONS index came out explains a bit about the "hedonic regression model" used: https://www.ons.gov.uk/economy/inflationandpriceindices/articles/introducingthesingleofficialhousepriceindex/2016-03-30#methodological-improvements
  19. A similar one in the same street ... that's been there for well over 2 years now! https://www.rightmove.co.uk/properties/56546640#/ No music speakers or bio ethanol fireplace .. but you do get ... wait for it ... your ...
  20. To be fair, that is (IMHO as a west london resident!) one of the nicer bits of Acton - feels more like North Ealing; leafy, mock-tudor houses, nicely planned 1930s layouts. Quite a big Japanese community. Still a crazy price especially given how small it is mind!
  21. I'm a little unsure here though ... If we want more affordable house prices ... Then agree we don't want government to artificially prop them up and "keep the plates spinning" forever. But .. thinking longer-term ... Is stamp duty itself something of an artificial prop? It does arguably discourage down-sizing and discourage moving to another area for work - would there be more supply and hence lower prices without it?
  22. A rather unusual beast - a one bedroom house: https://www.rightmove.co.uk/properties/98712044#/ You know it's bad when they say "Ideal for Investors" - which I think means "you wouldn't want to live it in yourself". It is 25% off though!
  23. Never seen this in a listing before: "Listed £100,000 Below Original Purchase Price" https://www.rightmove.co.uk/property-for-sale/property-86654815.html Wouldn't get too excited though, looks like they paid at least twice as much as its worth ...
  24. Do you have any stats on the mix of property types? e.g. if the ratio of 4 bed houses to 2 bed flats in your sample has significantly increased over the same period then simply comparing prices could be a bit misleading.
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